Oil settles slightly higher after FOMC minutes

FXStreet (Córdoba) - WTI crude oil managed to settle slightly higher after falling to a low of $39.89 on Wednesday weighed by concerns over the worldwide supply glut despite both EIA and API inventory data came in lower than expected.

According to the latest EIA data, US stocks rose by 252K barrels last week, against expectations of a 1.6 million barrels increase. Late Tuesday, the API report showed that the US crude stockpiles fell last week by 482,000 barrels due to lower imports and higher refinery runs.

Traders however, remain concerned over the worldwide glut, and the news failed to trigger speculative demand.

WTI technical view

“The black gold is ending the day pretty much where it started it, with the daily chart showing a lower low and a lower high, in line with some further declines. The technical indicators in the mentioned time frame have resumed their declines near oversold territory, whilst the 20 SMA extends its bearish slope well above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price remains below a horizontal 20 SMA while the technical indicators diverge from each other around their mid-lines, giving no much clues on what's next in the short term”.

Bednarik, locates next support levels at 40.10, 39.20 and 38.50, while she places resistances at 40.70, 41.35 and 42.50.
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